Calculate equity multiplier

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Reference no: EM131060024

Financial statement analysis. Suppose a firm's earnings growth rate is 5%, return on assets (ROA) is 22%, debt ratio is 45% and stock price is $50. Calculate equity multiplier.

A) 1.45

B) 12.5

C) 1.25

D)1.50

E) 2.52

F) None of the above

Reference no: EM131060024

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